Fannie Mae-No Politics (FNMA)

[Rodney5]

The focus point
Nationalized private companies.

The Shareholders have lost both companies to the Treasury. ALL THE CASH THAT CAN BE TAKEN OUT OF THE BUSINESS DURING ITS REMAINING LIFE.

SUPREME COURT OF THE UNITED STATES

Justice Breyer

UPMOST IMPORTANT: JUSTICE BREYER: Quote: “Thank you. I think in reading this you could, with trying to simplify as much as possible, do you -- the shareholders' claim as saying we bought into this corporation, it was supposed to be private as well as having a public side, and then the government nationalized it. That's what they did. If you look at their giving the net worth to Treasury, it's nationalizing the company. Now, whatever conservators do and receivers do, they don't nationalize companies. And when they nationalized this company, naturally they paid us nothing and our shares became worthless. And so what do you say?” End of Quote, page 12

Link: https://www.supremecourt.gov/oral_arguments/argument_transcripts/2020/19-422_3e04.pdf

The conservatorship can be settled were each holder of equity in the companies come out to some degree satisfied. The Junior Preferred and the Common Shareholders do not have to be wiped out. Treasury has taken roughly $150 billion more than it could have received under the original 10% dividend. If the Treasury would deem the liquidation preference paid and the Senior Preferred Stock canceled the companies common stock and preferred stock both could be relisted on the NYSE and trade at fair value; the companies could turn to Wall Street with a Secondary IPO replacing the Treasury's backstop.